Client Communication and Service Flashcards

A broker discovers after filing that the client provided incorrect HTS classification information resulting in underpayment of duties. What is the appropriate action?

Answer: File a post-entry amendment or prior disclosure and advise the client of the error and corrective steps

Brokers must promptly correct known entry errors by filing a post-entry amendment and advising the client to fulfill their reasonable care obligation.

A client asks the broker to act as their importer of record for a shipment. Under what circumstances may a licensed broker serve as the importer of record?

Answer: Only when the broker has a financial interest in the goods or takes possession of them

A broker may serve as importer of record only when they have a financial interest in the merchandise or actually take legal possession of it.

Which of the following statements about the Importer Security Filing (ISF) is most accurate when advising a client?

Answer: ISF must be filed at least 24 hours before vessel departure from the last foreign port for ocean cargo

ISF (10+2) must be filed no later than 24 hours before the cargo is loaded aboard the vessel at the last foreign port of lading.

A client operating under a continuous bond asks about the bond sufficiency requirement. What general rule should the broker communicate?

Answer: The continuous bond should be at least 10% of total duties, taxes, and fees paid in the prior calendar year, with a $50,000 minimum

CBP generally requires continuous bonds of at least 10% of prior year duties paid, with a $50,000 minimum, to ensure sufficient coverage of potential liability.

A client asks why their goods imported from a GSP-eligible country were not given duty-free treatment. What is the most common reason a broker would identify?

Answer: The goods may not have met the 35% value-added rule or direct shipment requirement for GSP eligibility

GSP eligibility requires that goods meet specific rules of origin, including a 35% value-added threshold in the beneficiary country and direct shipment requirements.

A client receives a CBP CF-28 Request for Information after entry filing. What should the broker advise?

Answer: Respond promptly and accurately within the timeframe specified, as failure to respond may result in adverse action

A CF-28 is a formal CBP request requiring timely and accurate response; failure to respond can result in CBP making unfavorable determinations or issuing penalties.

A broker is approached by a new client who has been blacklisted by another broker for non-payment. What due diligence should the broker perform before accepting this client?

Answer: Review creditworthiness, request references, consider requiring duty payment upfront, and establish clear payment terms in writing

Brokers should conduct credit and reference checks on new clients and establish written payment terms to protect against duty remittance risk.